Water treatment and environmental protection company, SIIC Environment Holdings Ltd, has posted a net profit of RMB240 million (US$35.9 million), a 25.9 per cent increase year-on-year for the first half of the year. The increase was mainly fuelled by strong organic growth, acquisitions, and contributions from existing subsidiaries as SIIC Environment continues to move toward achieving the status of industry leader.
Revenue rose by 78.2 per cent year-on-year to RMB1.995 billion (US$298.9 million) due to the increases in construction revenue, operating and maintenance income from service concession arrangements, as well as financial income from service concession arrangements. Gross profits went up to RMB707.7 million (US$105.9 million), and profits from operations improved by 107 per cent year-on-year to RMB558 million (US$83.6 million).
Additionally, SIIC Environment’s plans to add to its portfolio this year is on track as its acquisition-driven expansion continues to significantly impact the wastewater treatment arena in the People’s Republic of China (PRC).
The Chinese Government’s commitment to environmental conservation and pollution reduction, implemented through the 13th five-year plan in the country’s water sector also bodes well for SIIC Environment overall operations and performance.
“The healthy numbers is a reflection of the continued success of our two-pronged strategy in organic growth and acquisition-driven expansion of quality assets that contributes positively to our revenue stream and profitability. The steady growth of the PRC economy is a fundamental driver of the development of the environmental sector, resulting in an increase in demand for tap water supply, wastewater treatment, and waste management services,” Zhou Jun, Executive Chairman of SIIC Environment, said. “The PRC government attaches high attention to energy conservation and environment protection. Looking ahead, the continued support and investment in the utilities industries in Chins as well as the focus on the “belt and Road” initiative by the PRC government are expected to present extensive investment opportunities in the environmental sector. These policies and opportunities will play a pivotal role in SIIC Environment’s growth strategies.”